The problems of combustion instability in an annular combustion chamber are investigated. A modified Galerkin method was used to produce a set of modal amplitude equations from the general nonlinear partial differential acoustic wave equation. From these modal amplitude equations, the two variable perturbation method was used to develop a set of approximate equations of a given order of magnitude. These equations were modeled to show the effects of velocity sensitive combustion instabilities by evaluating the effects of certain parameters in the given set of equations. By evaluating these effects, parameters which cause instabilities to occur in the combustion chamber can be ascertained. It is assumed that in the annular combustion chamber, the liquid propellants are injected uniformly across the injector face, the combustion processes are distributed throughout the combustion chamber, and that no time delay occurs in the combustion processes.